THE PHENOM CRYPTO LETTER

GM,

Welcome to the Phenom Crypto Update where we cover everything you need to know about crypto over the last week.

Here’s what we’ve got this week:

• Is retail back? 💵

• Whats going on with the crypto sell pressure? 💨

• Is ETH Bullish or Bearish? 🐂

• Trump Holds ETH 🕺

• ZachXBT uncovers massive BTC Heist 🦹🏼‍♂️

Jump to a Section :

• Reading Corner

• Blockbuzz

• Crypto Twitter

• Memes

Massive Bitcoin Heist Exposed by Crypto Detective ZachXBT! 🕵️‍♂️💰

So, you think your day was rough? Try losing $238 million in Bitcoin. Here’s the lowdown on how a crypto detective just uncovered one of the biggest thefts in Bitcoin history.

• Who’s the Hero?
  @ZachXBT, the Sherlock Holmes of the crypto world, did it again! This guy has a nose for sniffing out crypto crooks. He’s like Batman, but instead of Gotham, he’s saving your digital wallet.

• The Crime Scene:
  A mysterious hacker (or hackers—who knows, really?) managed to swipe 4,000 Bitcoin. That’s enough to buy… well, anything your heart desires.

• How They Did It:
  It all went down during the chaos of the FTX drama. You know, that whole mess where FTX imploded like a cheap piñata? In the middle of that, a hacker exploited the chaos and made off with the btc. Talk about opportunistic! 😬

• The Chase:
  ZachXBT didn’t just sit around tweeting memes—he tracked these funds across 8 different blockchains. 8! I can barely keep track of my streaming subscriptions. 📺

• The Big Reveal:
  After some serious blockchain sleuthing, Zach found out where the money went. It’s like watching a game of digital hide-and-seek, except the stakes are… you know… hundreds of millions of dollars. 😱

• What Now?
  The funds are sitting in some wallets, waiting to be moved (again). What’s next? Who knows! But we’re all on the edge of our seats. 🍿

• The Takeaway:
  Keep an eye on your crypto, folks. And maybe send ZachXBT a thank you note—or a tip he devotes himself to tracking down crypto criminals.

Stay safe out there

Is the Crypto Sell Wall Breaking Down?

This summer there have been numerous well publicized crypto dumps. These have flooded the market and created tons of sell pressure on Bitcoin and ETH that cascades to the rest of crypto.

• Greyscale’s ETH and BTC trusts

• Mt Gox payouts

• US Government selling Silk Road and other BTC seizures

• German Government selling seized BTC

Any of these would significantly affect the market but all 4 at once? That amount of sell pressure would strain any market.

The Good News: We’ve absorbed over half this sell pressure already. The worst is behind us. We may continue to grind sideways through the rest of it but as things look now, the majority of the supply overhang is clear.

Is Retail Back?

Over the last 2 weeks retail investors have been buying up US stocks at the highest pace in over 12 months.

As the S&P 500 crashed 7% retail investors poured money into the market with net inflows reaching over $1.7B last week. The markets crashed and retail investors bought the dip (nice work, retail).

In addition we are seeing the global money supply continue to creep up.

Over the last week the DXY Index has continued to fall as well. With a strong dollar investors are able to earn higher risk free yield and leave their money in dollars. When the dollar weakens investors tend to shift their money further along the risk curve i.e. equities and our favorite, crypto.

What it Means: Risk appetite is strong. Despite a decent sized market crash investors choose to invest in equities instead of hitting the exits and moving into bonds or gold. With rate cuts looking imminent and the dollar weakening investors are betting heavily on a bull market and staying long risk assets. A lot of variables are in play but some of the most reliable macro indicators are pointing to a wild Q4 this year.

READING CORNER

A collection of longer form content we are consuming this week 

This is some crossover material from our Gold Investment Newsletter where we cover commodities and junior mining companies.

Longer X article laying out the Bear and Bull cases for ETH

BLOCKBUZZ

Quick Hitters from the week

• Bitcoin Dominance Surges to 56%: Glassnode reports that long-term holders continue to accumulate BTC, maintaining strong conviction despite recent price fluctuations.

• $1 Trillion US Treasury Liquidity Injection Could Propel Bitcoin to $100K: Analysts predict that the massive liquidity boost could drive Bitcoin’s price to new heights.

• Ethereum Leads Trump's ‘Crypto Treasure’: Ethereum plays a central role in the emerging narrative around Trump's involvement in the crypto space.

• Ethena Struggles Amid Market Correction: Negative funding rates and market turmoil lead to a $500 million drop in USDe supply, making Ethena one of the hardest-hit platforms.

• Meta Mask Launches Debit Card: You can now spend directly from your self custody wallet.

THE TWITTERVERSE

A collection of the most interesting stuff on Crypto Twitter this week

Keep an eye on BTC dominance. As BTC runs up holders shift profits further out the risk curve leading to price action on smaller coins

WAGMI

For the (crypto) Culture

Wen Lambo…asking for a friend 😭

Sorry uncle mike

📣 Share with your friends and get free stuff! 📣

If you like Phenom Crypto maybe someone you know would as well.

As a way to say thank you in case you refer someone, we’ve built a referral program. Check out our current reward milestones below!